Electronic contract manufacturing and design service is the service provided by companies which design, manufacture, test and provide other related services to original equipment manufacturers. The market for this service is expected to have a significant growth driven by several advantages offered by subcontracting manufacturing and design services. The OEMs can focus on their core capabilities and take advantage of design expertise, supply chain management and manufacturing capabilities of the service providers. Competition in the electronic industry is increasing and subcontracting helps reduce cost. Furthermore, rising demand for electronics across several end-use industries and technological innovations is also estimated to fuel the market growth. By service, the electronic design and engineering segment are projected to have a significant growth due to technological advancement and growing consumer expectation. By geography, the Asia Pacific region is estimated to have a considerable market share due to the outsourcing of product design and manufacturing of electronics and low cost of labor in the region.
DRIVERS
Rising demand for electronics from several end-use industries
Increasing adoption of contract manufacturing services by SMEs
RESTRAINT
Concerns regarding privacy and quality
INDUSTRY UPDATE
In March 2018, Taiwanese giant Foxconn, the company that manufactures the iPhone for Apple, bought accessory maker Belkin, as well as associated brands Wemo, Linksys and Phyn
In July 2019, Plexus announced the completion of the renovation of its facility in Livingston, Scotland. This renovation completes Plexus’ multi-year investment to expand and upgrade all eight of its global engineering facilities
SEGMENTATION
The electronic contract manufacturing and design services market has been analyzed through the following segments:
By service
Design & engineering
Manufacturing
Assembly
Testing
Others
By end-user
Telecom & IT
Consumer electronics
Automotive
Aerospace & Defence
Healthcare
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Japan
South Korea
India
Others